AT&T’s iPad Deal Due to Carrier’s Aggressive Pricing Strategy

AT&T Outbid competitors for iPad deal

The last week of January saw extensive speculations regarding the networks Apple would partner with in the launch of the iPad

Back then, Fox News had reported strong possibilities for the launch of two versions of iPad – running on GSM and CDMA respectively. 

Since then, it has been revealed that AT&T will be the sole partner offering data connectivity to the device. While a CDMA version of the device is still rumored to be in the works, there is no doubt that AT&T's pricing plan for the iPad are extremely competitive – $14.99 monthly for 250MB and $29.99 monthly for unlimited data usage, along with free use of AT&T Wi-Fi hotspots nationwide. 

So why didn't Apple look outside its existing carrier partner for the iPad? Clayton Morris from Fox News claims his sources as revealing that it was AT&T that secured the iPad deal by outbidding its competitors including T-Mobile and Sprint. He says AT&T's aggressive pricing strategy was the ultimate deal-clincher. For a perspective, compare the $29.99 per month unlimited data usage plan for the iPad with the company's plans for other mobile computing devices like HP Mini 110 and Acer Aspire One where the data plans are in the range of $60 for 5GB and $35 for 200 MB per month.

According to tech strategist Michael Gartenberg, the rumored Apple-Verizon partnership might not happen before Verizon moves to LTE technology which is expected to be completed not before the end of this year. 

The AT&T plan for iPad does not come with a contract and users are free to cancel it at any point in time. However, given the attractive pricing offered to iPad customers and also considering that other possible network partnerships are still sometime away, do you see this as a win-win situation for AT&T and their customers? Please tell us your thoughts in the comments. 

[via Fox News]